Foreign Relations of the United States, 1961–1963, Volume XII, American Republics

172. Telegram From the Department of State to the Embassy in Argentina¹

Washington, May 24, 1961, 10:52 p.m.

1701. Following based on uncleared memorandum of conversation:²

Argentine Economic Minister Alemann called on President today accompanied by Ambassadors del Carril and Rubottom.³

Alemann said that Frondizi hoped to meet the President on occasion IA-ECOSOC Conference, either in Montevideo or in Buenos Aires, should President plan to stop at one or more countries en route. President said he too would most warmly welcome such a meeting although he unable at this time make decision on visiting Montevideo, in view of possibility his presence might be needed in Washington during July when Congress would probably be very active on many of the Administration’s important bills.

Alemann referred with pride to hard-won economic successes Frondizi Government has already achieved. He referred also to GOA’s political success in most recent local elections. He declared GOA now approaching point where Frondizi’s sound economic practices will produce basic economic success and political recognition, but that GOA needs immediate help. Alemann declared he not in Washington to seek “aid package” but rather to obtain informal but firm assurance, for political purposes, of USG’s intent to extend loans to GOA when requested on sound project basis. He cited specifically need to finance rehabilitation of railroads which running at deficit approximately equal to fiscal deficit.

Alemann said GOA fully understood and approved US aid to Brazil as significant contribution Brazil’s economic and democratic stability which extremely important to Argentina and US and Latin America as a whole.

President mentioned USG’s traditional difficulty in making long-range aid commitments. He said he understood Alemann had had useful meeting with Dillon. He asked Goodwin of White House staff to coordinate urgent study and action by State, Treasury and other interested agencies both on trade and aid matters that Alemann had raised.⁴

Rusk

1. Source: Department of State, Central Files, 735.5-MSP/5-2461. Confidential. Drafted by Coerr; cleared with Goodwin, O’Conner, Barall; and approved by Coerr.
2. Not found.
3. The meeting was held from 4:28 to 4:57 p.m. at the White House. (Kennedy Library, President’s Appointment Book) In the briefing memorandum to the President prepared for Alemann’s call, May 22, the Department of State stressed that by receiving the new Argentine Economic Minister, President Kennedy could provide useful support of Argentina’s economic stabilization and recovery program. The austerity program had won international approbation, but was very unpopular in Argentina. (Ibid., National Security Files, Countries Series, Argentina, General, 1/61-7/61)
4. No further documentation on this prospective study has been found.